Evaluating Effectiveness of Performance Management System

Evaluating Effectiveness of Performance Management SystemINTRODUCTIONPerformance precaution drive out be explained as the measures or governances put in entrust to ensure that the organization and entirely its sub organisations i.e. departments, processes, teams, employees, etc. are working together in an optimum way towards achieving their goals and the results desired by the organization (Jackson, 1999143). This field can be broken down into two components one looks at the procedure of a play along as a whole evaluating the effectiveness of merry-go-round management in r to each oneing company goals while the other is a system of evaluating employees to help them reach goals that help them develop and ensure the company performs better. This paper pass on look at the later type of exertion management. Performance management of individual employees involves setting of goals, planning work, giving feedbacks and reviews, providing opportunities for improvement and apprais al systems for well playacting employees (Scullen, Bergey. Smith, 200528). This paper get out focus on the case ruminate, Performance management at Network Solutions Inc. to give an informed review of performance management systems and their effectiveness. This will be achieved by providing detailed responses to quadruplet critical thinking questions emanating from the case study. It will begin by giving a review of the case study and proceed to evaluate the questions presented.REVIEW OF THE CASE STUDYThe necessity of performance management systemNetwork Solutions Inc. had been using more that 50 different systems of performance measurement in the company. Despite this huge number of systems, it was found that many employees did not receive a review, fewer than 5% of all employees received the terminal category of rating, and there was no recognition program in place to reward high achievers (Aguinis, 2009 19). in that location was clear indication that the employee performan ce management systems that were flood tide at a high cost were ineffective in addressing the required issues. Being in the business of computer hardware and software, the company found that tint initiatives were driving change in a wide area of the company. It was therefore decided that such quality initiatives could be applied to improve people quality. Further, it was seen that linking each employees goal to the organisational goals would greatly help the company in achieving its objectives (Aguinis, 2009 21).How the system worksDue to the above mentioned needs, the company decided to adopt a force distribution management system in which each employee would be classified into a category depending on relative performance e.g. a rating of 1 to the top 20% of performers a rating of 2 to the middle 70% of performers and a rating of 3 to the female genitals 10% of performers (Aguinis, 2009 24). This system would be implemented by a global cross-divisional Human Resource team. Thei r plan was to begin by showing that business goals would be easily met by carrying down organizational strategy to team component parts which are translated to individual goals. This system would raise the bar on the companys performance management by focusing on the development of all employees. This would result into raised performance for all employees, talent identification and retention, and improvement of performance expectations for all employees.Company supportTo effectively manage this system, the team want support from the companies top managers who were required to remain committed to the plan. They were required to stop using any other system of performance management and ensure that top leaders understood and accepted it. They were required to engage employees in talent management training in line with the unused system. The result of the plan is a performance management system that revolves around a joint year round responsibility of employees and managers developi ng the planning phase of the system (Aguinis, 2009 21). Managers schedule meetings which are prepared and finalized by the employees. Lowly rated employees are given beat for performance improvement after which depending on their performance they could leave the company or cover up with the plan. Average and best performers are given appraisals in form of salary increases, stock options and bonuses depending on the level of performance.The next part will use four questions to evaluate how the system at Network Solutions. compares with the nonesuch performance management system and give an assessment of its advantages, disadvantages and expected outcomes.OVERLAP BETWEEN NETWORK SOLUTIONS carcass AND AN IDEAL SYSTEMQuestion 1 Overall, what is the overlap between Network Solutions system and an ideal system?To answer this question, this section will look at the extent to which the performance management system at Network Solutions corresponds with the ideal system. It will look at the process that it follows in terms of phases. anatomy 1 - Performance planning.This is the stage where managers in the firm meet with the employees for discussion on the planning of the performance appraisal process. They define the behaviours and competencies expected of the employees and there is statement on what the person will achieve in the next twelve months. These goals are closely linked to the individuals development plans. As such, the manager automatically earns the right to pee the employees accountable at the end of the year (Simmons, 200286). Network Solutions have exhibited this phase by calling on all the senior managers to implement such measures.Phase 2 Employee Performance ExecutionThis is the phase where employees display the actual performance that is subject to evaluation at the end of the year (Winstanley Stuart-Smith, 199666). Network Solutions displays this phase which is in accordance to the ideal system where there is a performance period of one year . In this period there are regular meetings to assess hand like they do at the company. The meetings are planned by the managers in conjunction with the employers who carry out the actual execution of the developments. In the meetings there is seeking of guidance and feedback in unlike issues (Rector Kleiner, 2002 43).Phase 3 Employee Performance AssessmentSenior managers assess how the employees in their departments have undertaken their duties and how much of their objectives they have fulfilled. They fill the various forms and paperwork intended for these purpose and forward them to the relevant team in readiness for individual appraisals based on performance (Molleman Timmerman, 2003 95). At Network Solutions, the assessment is comparative with the rating being based on the performance level, e.g. a rating of 1 for the top 20% of performers, 2 for the middle 70% and 3 for the bottom 10%Phase 4 Employee Performance ReviewIn this stage, the employee performers appraisal for m that was prepared by the manager is reviewed together with the individuals self appraisal (Lawler McDermott, 200356). There is an honest assessment of the strengths, weaknesses, successes and areas needing improvement in the past twelve months. It is at this stage that the course of action to be taken in the next year is decided. In the case of Network Solutions, a low performer would consult with the managers to decide on the modalities of the performance improvement plan.From this assessment, it is clear that the performance management system at network Solutions overlap with the ideal system as has been demonstrated in the timeline approach taken.FEATURES IN THE SYSTEMQuestion 2 What are the features of the system implemented at Network Solutions that correspond to what was described in the chapter as ideal characteristics? Which of the ideal characteristics are missing? For which of the ideal characteristics do we need excess information to evaluate whether they are part of t he system at Network Solutions?To supply an answer to this question, the paper will identify the aspects that are characteristic of the ideal performance system and for each identify if it is present or lacking in the Network Solutions system.Standardization The ideal performance management system requires that the aspects of performance measured are uniform and there is a constant level of strictness (Scullen, Bergey and Smith, 2005 27). This is meant to ensure that employees do not lack faith in their mangers and the system that might result from variations. The system at Network Solutions exhibits this aspect when the team ensures that the managers drop the previous systems and they offer training so that they can understand and utilise it uniformly.Validity and conciseness this means that the performance management system but measures what is valid at hand. The evaluation criterion therefore makes sure that employees are evaluated only in issue that regard their line of work ( DeCenzo and Robbins, 2010 214). In this case, the team of performance managers ensures that this is done by asking senior leaders to tailor new programmes applicable in their divisions. Hence the evaluation procedure in say the HR department is not the same as that in a skilful field.Due process this means that there are set guidelines that determine how measures are taken after the evaluation. In the case of network solutions, employees who are low-spirited rated are a given a specified time period to improve their performance (Fisher, 199555). If they do not improve, they can choose to leave the company with a rupture package or take up a performance improvement plan. If this does not improve their performance they leave without a severance package. There is also set guidelines that dictate the appraisal of good performers with high salary increases, stock options and bonuses.ANTICIPATED RESULTS FROM IMPLIMENTATION OF THE SYSTEMQuestion 3 found on the description of the syste m at Network Solutions, what do you anticipate will be some advantages and coercive outcomes resulting from the implementation of the system?The real value purpose of employee performance appraisal in the organization is not only to transform the management of employee performance from an annual event to an ongoing cycle but also to harmonize the organizational goals with those of member employees (Cardy, 2004128). The performance management system that the company adopts is fully geared to achieve this end. The systems will therefore yield immense advantages and positive outcomes. These will include the followingGoal setting the system helps employees understand the link between their responsibilities and the overall objectives of the organization. The habit of goal setting is inculcated in some(prenominal) the managers and employees. This results into greater efficiency and provides a good tool of analysis (Luecke Hall, 2005100).Communication the system that the company adopts will encourage good converse between managers and employees. The communication about work performance creates a sense of security for the employees and helps the company in retention efforts. It provides ample time for all employees to learn and grow passim the year. This fosters an organizational culture ().Motivation the appraisal system acts as tool of motivation since employee rewards are tied directly to performance. This enhances the companys productivity and efficiency. Employees who know that their presence and contribution is valued may feel more committed to the job and the organization as a whole (Pulakos, 2009 212).POSSIBLE DISADVANTAGES AND NEGATIVE OUTCOMESQuestion 4 Based on the description of the system at Network Solutions, what doe you anticipate will be some disadvantages and negative outcomes resulting from the implementation of the system?The following are the possible disadvantages associated with this system of management performanceRisk of Internal Competit ion this system might encourage employees to compete with each other for job status, come out and pay (Molleman Timmerman, 2003 101). Teams might be broken down by backstabbing and misleading employee communication due to strong rivalry which would result to dysfunction and underperformance within the team.Expenses and time this system requires that employees are given rigorous training to equip employees with skills as required by the plan. This requires the use of extra resources and time in the extensive training, educate and career development workshop for every division and employee division (Scullen, Bergey and Smith, 2005 34)Favoritism due to the rating of employees, there emerges individuals who are viewed as key and they are more and more entrusted with new job roles and duties as team leaders. This creates dissent and distrust among the team members which might adversely affect the morale and satisfaction ((Luecke Hall, 2005108).